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Gold Investing is VERY Wise...
When the Glitter Is Not Gold- an Experiment
Economist are taking a cue from Australia's selling her gold reserves twice, specifically one done in 1997 (167 tons of her gold reserve) – a portion that dramatically cut the county's gold holdings to the present 80 tons. This is equivalent to a money gone down the drain had they been sold today.
The case of Australia's reserve gold selling proves that physical gold as an investment guarantees security. While the move speaks strongly of Australia's having no faith in her gold as her government categorized it as a “flat price” in the market, it presently admits the billions of losses she had by today's gold price standard. When the sale was done, the Australian government had an estimated reserve that would last them over 30 years. Then was when gold remained stable in price for years. Australian Central bank took action as it inked out that the sale won't affect any forthcoming economic crisis all over the world. The move spiraled a bump on global economies. Australia narrowed its trade deficit to 1564 in June 2014 as exports grew and imports steady. Of its 80 tons of gold, 0.1 % is in Australia, the rest in a London storage. A British colony, she is considered one of the wealthiest countries presently.
The Bear vs. the Bull
Australia's Central bank in authorizing the sale stated that for over three decades and significant economic crises, gold never played a role. It extended the argument to the fact that international governments hold on to gold reserves because it is the only asset that is not a claim on some international banks. Very well said by a country whose trade deficit narrowed in June 2014 (from $2043 million to 1683). Not a bad record too for a country who has good trade relations with Japan and China, her well off continental neighbors from Asia.
While the status of Australia hasn't really been dependent on the gold reserves she has, the rest of the world wonder how much richer she would have been had those reserves not been touched assessing the present market value gold takes. This also disproves the notion that gold is a pre-occupation to the well offs, like Australia. So well off she is that she doesn't need more. As of August, Australia's trade deficit widens to AU$1.61 from 883 in July. The indicator was increased import over the exports. But still, gold is not speaking, not yet.